Answer and Explanation:
Long-term Liabilities
Bonds Payable $600,000
Less:
Discount on bonds payable $45,000 $555,000
Notes payable $80,000
Total Long-term Liabilities $635,000
The answer is:
B Because idk
Answer:
<em>15,101.15 shares</em>
Explanation:
<em>Northwestern Lumber products has =17,500 shares of stock</em>
<em>The Manager Patricia considers issuing $135,000 of debt, at an interest rate of 6.6%</em>
<em>Let us find how many shares of stock will be outstanding once the debt is issued,</em>
<em>Given that </em>
<em>$65,000/17,500 = ($65,000 − 135,000(.066))/X
</em>
<em>Then X = 15,101.15 shares</em>
Answer:
17.10%
Explanation:
The computation of the cost of equity is shown below:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6.10% + 1.25 × 8.8%
= 6.10% + 11%
= 17.10%
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same is applied.
All other information which is given is not relevant. Hence, ignored it
Answer:
The answer is "$400"
Explanation:
The price value of the exercise:
= $127
The expiration date price value is:
= $135
Calculating the profit for Calls buyer:
= $135-$127
= $8
The value of 1 call = 100 shares
calculating the total profit :
=$ 8 × 100
= $ 800
One alternative purchase price:
= $12
Call option Total purchase price:
= $12 × 100
= $1200
The buyer's total loss:
= $1200 - $800
= $400
The Loss for the buyer:
Hence profit for the writer = $400